Suspect #1: Dellen Millard *Charged* 1st Deg Murder 15 May 2013 #2

[Eldee]

There is a Capital Gains exemption for your principle residence.



http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html#P298_31900

#1
Since DM sold that home to MB for $1.00 then he would not pay capital gains tax. However, since, IMO it is not MB's principal residence, ( wouldn't her principal residence be in Kleinburg?) then she is responsible for the capital gains tax as she was the owner when it was sold. Her purchase price is $1.00 her sale price is $1.2 million, that is one heck of a capital gain. Plus, 50% of the capital gain gets added to her income that year, and I am sorry I should have said a 50% tax bracket which is then a $300,000 tax bill plus all of her other income is taxed at that same bracket. She then loses all of her age tax credits ( assuming she has them ).
Hopefully this isn't considered sleuthing MB but more so of stating tax implications. When someone is prepared to take on that kind of a tax burden there must be a really good reason for selling that property. ( needing money)
Just my own opinion.
#2
Who knows what is buried beneath the ground but I sure wouldn't want to be the new owner, that is for sure. Again, Just my own opinion

 

[Juballee]

#1
Since DM sold that home to MB for $1.00 then he would not pay capital gains tax. However, since, IMO it is not MB's principal residence, ( wouldn't her principal residence be in Kleinburg?) then she is responsible for the capital gains tax as she was the owner when it was sold. Her purchase price is $1.00 her sale price is $1.2 million, that is one heck of a capital gain. Plus, 50% of the capital gain gets added to her income that year, and I am sorry I should have said a 50% tax bracket which is then a $300,000 tax bill plus all of her other income is taxed at that same bracket. She then loses all of her age tax credits ( assuming she has them ).
Hopefully this isn't considered sleuthing MB but more so of stating tax implications. When someone is prepared to take on that kind of a tax burden there must be a really good reason for selling that property. ( needing money)
Just my own opinion.
#2
Who knows what is buried beneath the ground but I sure wouldn't want to be the new owner, that is for sure. Again, Just my own opinion

Is that the same for trusts?

I think that if your child were accused of a serious crime and you believe he is innocent, you would do anything and everything you thought would help him, so I see no need to criticize her for needing money for her sons defence. Again, many people who are financially well off have the majority of their money tied up in other investments that have similar penalties for early withdrawal. I don't think it's our place to sleuth her financial situation, which tax credits she might have, and how much liquid working capitol she might have access to at the moment, or even what she plans on spending it on.

And if you want to start an unsubstantiated rumour about ghosts and possible bodies buried on a property now owned by someone not involved in the case, I think it is not only in poor taste, but it can possibly create a stigma on their home that could further lower the market value of it, and that is unfair in my opinion.

 

[Snoofo]

#1
Since DM sold that home to MB for $1.00 then he would not pay capital gains tax. However, since, IMO it is not MB's principal residence, ( wouldn't her principal residence be in Kleinburg?) then she is responsible for the capital gains tax as she was the owner when it was sold. Her purchase price is $1.00 her sale price is $1.2 million, that is one heck of a capital gain. Plus, 50% of the capital gain gets added to her income that year, and I am sorry I should have said a 50% tax bracket which is then a $300,000 tax bill plus all of her other income is taxed at that same bracket. She then loses all of her age tax credits ( assuming she has them ).
Hopefully this isn't considered sleuthing MB but more so of stating tax implications. When someone is prepared to take on that kind of a tax burden there must be a really good reason for selling that property. ( needing money)
Just my own opinion.
#2
Who knows what is buried beneath the ground but I sure wouldn't want to be the new owner, that is for sure. Again, Just my own opinion

If she was holding it in trust for the beneficial owner then IMO she didnt gain anything from its sale.

 

[jash]

The home was host to pool parties with Millard’s schoolmates, and a bevy of cats and dogs lived there throughout the years, friends and family said.

When the Star visited the home, which backs onto a golf course, in May following a police investigation, it was a mess, with clothing, documents and cans of soup strewn throughout. The only thing moving was a black cat.

http://www.thestar.com/news/crime/2..._mother_sells_family_home_for_12_million.html

(1) I wonder what happened to DM's pet(s) after his arrest. What's the police protocol in a situation where they arrest someone who lives alone but has pets? Call Animal Control? Or leave the pet in the house and trust friends/family will come and take care of it?

(2) Assuming the mess was made by DM (I can see police disturbing clothing and documents while searching for evidence but not soup cans), I wonder if this was the normal state of his house, or if it says something about his mindset in the days following TB's murder.

 

[Snoofo]

http://www.thestar.com/news/crime/2..._mother_sells_family_home_for_12_million.html

(1) I wonder what happened to DM's pet(s) after his arrest. What's the police protocol in a situation where they arrest someone who lives alone but has pets? Call Animal Control? Or leave the pet in the house and trust friends/family will come and take care of it?

(2) Assuming the mess was made by DM (I can see police disturbing clothing and documents while searching for evidence but not soup cans), I wonder if this was the normal state of his house, or if it says something about his mindset in the days following TB's murder.

Interesting thoughts.
#2
Why not soup cans? Cans are perfect for hiding things, as once told by a cop to a friend of mine that had his house broken into. He said people dont think to look in a used can. Granted the friend was a painter therefore resealeable paint cans were the concealing can of choice but they may have tossed his garbage/recycling bin Iin search if evidence -why take great care to put that back? Said soup cans could be descriptive of any like-sized cans i.e. pet food cans.
Maybe the hungry cat found the soup cans and brought them out to lick the remnants?
:worms:

 

[MsSherlock]

I am not going to claim to understand capitol gains taxes, but it was my understanding that you do not pay capitol gains on the sale of your primary residence. It was stated in many articles that he resided there with his father before his fathers death. After the death it would have become his property, and since that is where he was living before being incarcerated, it is then considered his primary residence, is it not? Capitol gains would instead have to be paid for the condo he bought to flip and the condo he doesn't live in instead.

This is the interesting thing Juballee. IMO, DM could have simply signed a Power of Attorney to give MB authority over as much or as little of his assets as necessary. Very affordable and effective. However, DM actually transferred the Title of these properties to MB for the consideration of $1.00 making it a lawful transfer/sale. DM was already on title to Maple Gate when WM died. IMO, he obtained full title to the property through succession and no capital gains tax would have been triggered if he had been using the property as his personal residence. IMO, there was absolutely no need for DM to sell the property to his mother for $1.00 and trigger capital gains when a simple POA would have achieved the same result, especially since the property was going to be sold. Yes, MB may have avoided paying the Ontario & Toronto Land transfer tax by buying it for $1.00, however, it still makes no sense. Since it's not MB's personal residence, capital gains may very well be triggered, or it could bring the whole DM to MB sale under the scrutiny of the CRA. JMHO

 

[Eldee]

This is the interesting thing Juballee. IMO, DM could have simply signed a Power of Attorney to give MB authority over as much or as little of his assets as necessary. Very affordable and effective. However, DM actually transferred the Title of these properties to MB for the consideration of $1.00 making it a lawful transfer/sale. DM was already on title to Maple Gate when WM died. IMO, he obtained full title to the property through succession and no capital gains tax would have been triggered if he had been using the property as his personal residence. IMO, there was absolutely no need for DM to sell the property to his mother for $1.00 and trigger capital gains when a simple POA would have achieved the same result, especially since the property was going to be sold. Yes, MB may have avoided paying the Ontario & Toronto Land transfer tax by buying it for $1.00, however, it still makes no sense. Since it's not MB's personal residence, capital gains may very well be triggered, or it could bring the whole DM to MB sale under the scrutiny of the CRA. JMHO

Maybe, the ongoing costs of keeping his properties has prompted the sale. Property taxes and maintenance would be expensive on the empty properties. This sale and the for sale in distillery district leads me to believe that money was not as readily available as we have been led to believe. JMO

 

[MsSherlock]

Some good info in this CIBC article on Transfer to Family Members
https://www.cibc.com/ca/features/transition-planning/transfer-to-family-members.html

 

[MsSherlock]

Maybe, the ongoing costs of keeping his properties has prompted the sale. Property taxes and maintenance would be expensive on the empty properties. This sale and the for sale in distillery district leads me to believe that money was not as readily available as we have been led to believe. JMO

Eldee..IMO you're correct, but the question is why would they have done a more complex $1.00 sale and incurred additional expenses when a simple POA from DM to MB would have covered everything for all the properties, assets etc?

 

[Blomquist]

http://www.thestar.com/news/crime/2..._mother_sells_family_home_for_12_million.html

(1) I wonder what happened to DM's pet(s) after his arrest. What's the police protocol in a situation where they arrest someone who lives alone but has pets? Call Animal Control? Or leave the pet in the house and trust friends/family will come and take care of it?

(2) Assuming the mess was made by DM (I can see police disturbing clothing and documents while searching for evidence but not soup cans), I wonder if this was the normal state of his house, or if it says something about his mindset in the days following TB's murder.

I can assure you...police will scatter everything. They will also if the desire takes them....put your freezer items into the refrigerator section.... tip plants upside down ...and so on.... they even empty boxes of cookies and dishwasher/laundry soap... If you think its a little look around that they do...you would be quite wrong IMO MOO

 

[Blomquist]

Eldee..IMO you're correct, but the question is why would they have done a more complex $1.00 sale and incurred additional expenses when a simple POA from DM to MB would have covered everything for all the properties, assets etc?

I do not believe they need the money... they could have rented the homes...and obtained income (quite a lot).... they probably have had enough of all the goings on and want to get out of the goldfish bowl....JMO

 

[Blomquist]

http://www.thestar.com/news/crime/2..._mother_sells_family_home_for_12_million.html

(1) I wonder what happened to DM's pet(s) after his arrest. What's the police protocol in a situation where they arrest someone who lives alone but has pets? Call Animal Control? Or leave the pet in the house and trust friends/family will come and take care of it?

(2) Assuming the mess was made by DM (I can see police disturbing clothing and documents while searching for evidence but not soup cans), I wonder if this was the normal state of his house, or if it says something about his mindset in the days following TB's murder.

When someone is at the court (in custody) they are asked if there are any pets at home. They are asked if they want someone to contact a family member/friend to check on pets...or if they need someone to go there ie./ someone given authority via/from court worker to do so.

 

[Alethea Dice]

When someone is at the court (in custody) they are asked if there are any pets at home. They are asked if they want someone to contact a family member/friend to check on pets...or if they need someone to go there ie./ someone given authority via/from court worker to do so.

This is good to know, but I wonder then why the black cat was still there after the police had finished their investigation and the The Star reporter visited. I hate to think the police just left the cat alone in an empty house. If they can search for missing Harley parts to return them to the owner, I would hope they could either let someone collect the cat or make sure it was in a shelter.

JMO

 

[Alethea Dice]

This is the interesting thing Juballee. IMO, DM could have simply signed a Power of Attorney to give MB authority over as much or as little of his assets as necessary. Very affordable and effective. However, DM actually transferred the Title of these properties to MB for the consideration of $1.00 making it a lawful transfer/sale. DM was already on title to Maple Gate when WM died. IMO, he obtained full title to the property through succession and no capital gains tax would have been triggered if he had been using the property as his personal residence. IMO, there was absolutely no need for DM to sell the property to his mother for $1.00 and trigger capital gains when a simple POA would have achieved the same result, especially since the property was going to be sold. Yes, MB may have avoided paying the Ontario & Toronto Land transfer tax by buying it for $1.00, however, it still makes no sense. Since it's not MB's personal residence, capital gains may very well be triggered, or it could bring the whole DM to MB sale under the scrutiny of the CRA. JMHO

But he didn't transfer the properties to MB personally. He transferred them to a Trust, with her as the Trustee. The Title would have been in the name of the Trust.

When Burns took title of Millard’s three properties, they were placed in trust and she became the appointed trustee. It’s unclear whether Millard maintained beneficial ownership, as trust documents are not public. Paradkar wouldn’t identify the beneficiary of the trust.

http://www.thestar.com/news/crime/2013/07/19/tim_bosma_case_dellen_millards_mother_sells_family_home_for_12_million.html

It's unknown if DM kept beneficial ownership. If he did, he would still have rights to recover or be compensated from the Trustee for misappropriated property or a breach of trust. I'm by no means an expert on Trusts, but this would lead me to believe that the Trust would sell the property, and DM, as the beneficiary of the Trust, would receive the proceeds. There would be no capital gains tax because of the residential rule.

JMO

 

[Eldee]

But he didn't transfer the properties to MB personally. He transferred them to a Trust, with her as the Trustee. The Title would have been in the name of the Trust.



http://www.thestar.com/news/crime/2013/07/19/tim_bosma_case_dellen_millards_mother_sells_family_home_for_12_million.html

It's unknown if DM kept beneficial ownership. If he did, he would still have rights to recover or be compensated from the Trustee for misappropriated property or a breach of trust. I'm by no means an expert on Trusts, but this would lead me to believe that the Trust would sell the property, and DM, as the beneficiary of the Trust, would receive the proceeds. There would be no capital gains tax because of the residential rule.

JMO

I am no expert in trusts either, but I believe you simply can't transfer property to a trust to avoid capital gains tax. I believe you have to transfer the property at fair market value into the trust thus setting a cost base. Because he sold the property to his mother for $1.00 he will not be subject to capital gains tax, but since he sold the property the principal residence rule no longer applies.

 

[Alethea Dice]

I am no expert in trusts either, but I believe you simply can't transfer property to a trust to avoid capital gains tax. I believe you have to transfer the property at fair market value into the trust thus setting a cost base. Because he sold the property to his mother for $1.00 he will not be subject to capital gains tax, but since he sold the property the principal residence rule no longer applies.

Do you have a different link that states he "sold" the property to his mother? Because the one I linked says that he "transferred" them to his mother and when she took title they were placed in trust. I would think the $1 is the nominal cost to have the documents notarized. What I'm saying is that, if he is the beneficial owner of the proceeds of the Trust, those proceeds would come under the principal residence rule.

Yes, the property would be transferred to the Trust and recorded at the current fair market value. For example, you have a cottage and you place it in Trust to go to your child upon your death to perhaps avoid probate. If your child does not have a principle residence to claim, he/she can use the principal residence rule to avoid capital gains tax. However, if the child does have a principal residence and wants to sell the cottage, the sooner he/she sells it the better, because the capital gains would be calculated on the difference between the value at the time the Trust was set up and the value when the cottage was sold. Using the same logic, even if DM didn't claim the principal residence rule, the capital gains tax would be based on the difference between the value of the property when it was transferred to the Trust and the amount that it sold for (again, IF he maintained beneficial ownership).

Hope this helps explain my reasoning.

I don't think his reasons given for the Trust will be to avoid capital gains taxes. I think it will be because he's in jail and can't look after completing the procedures himself.

JMO

 

[Blomquist]

I am no expert in trusts either, but I believe you simply can't transfer property to a trust to avoid capital gains tax. I believe you have to transfer the property at fair market value into the trust thus setting a cost base. Because he sold the property to his mother for $1.00 he will not be subject to capital gains tax, but since he sold the property the principal residence rule no longer applies.

He transferred the property...he didnt sell it. You can do this with cars too.... I believe its to family only (close)

 

[Snoofo]

He transferred the property...he didnt sell it. You can do this with cars too.... I believe its to family only (close)

You can, and DM could have transferred to MB for $1 as she is his mother, but he didnt appear to do so. He transferred to her in her capacity as a trustee, not as his mother.

 

[Eldee]

She sold the property for 1.2 million. Maybe she simply transferred it to another family trust for 1.2 million. This is where the 1.2 million can get rather convoluted if it is mixed in with stocks and bonds and other investments inside of a trust. Their lawyers are good.

 

[Blomquist]

This is good to know, but I wonder then why the black cat was still there after the police had finished their investigation and the The Star reporter visited. I hate to think the police just left the cat alone in an empty house. If they can search for missing Harley parts to return them to the owner, I would hope they could either let someone collect the cat or make sure it was in a shelter.

JMO

Maybe there is cat door .... and someone goes in to feed the cat ? Or there is a cat door and Dellens cat has been taken to his moms and the neighbourhood cat uses it for dating ??